Why Should I invest in Mangalore?
Mangalore is a quiet place on the western coast of south India.The weather is tropical with monsoons from June to September. It has a seaport, railway connectivity and the National highway 17 passes through Mangalore. It also has an international airport with everyday flights connecting to all the Gulf countries. It is one of the most educated district in the country and the highest in the state. The city has a low crime rate and a very good educational system with a number of medical, dental, nursing, Physiotherapy, hotel management, engineering, Management colleges etc. The city has recently seen rapid growth in the industrial sector with the advent of MRPL(Mangalore refinery and Petrochemicals).The proposed SEZ(Special Economic Zone) by ONGC one of the biggest SEZ in the whole country is just shaping up with the construction in full swing.There is a proposed IT park of around 400 acres in Mangalore for which the infrastructure work is in progress. Companies in the IT sector like Infosys, Mphasis etc have already a strong hold in the district. The city is on a rapid growth. The rates here are much cheaper than metropolitan cities like Bangalore, Bombay etc. So it is the right time to invest.
What are the returns of my investment?
The lands appreciate anywhere between 20% to 60% per anum, depending upon the purchase price, location etc.
The apartment yields a rental income of about 3-5% per anum. The Value of the Flat generally appreciates in the first 3-5 years at about20-60%.Then it gets a little stagnant with new buildings in the making. But is is always a good bet to buy earlier than later, because the cost steadily rises from year to year.
I am working abroad, how do I buy without being present?
A person can buy a flat without being present by issuing a power of attorney to any of his friends, relatives, builders etc. The power given to the person can be controlled. It can be to only buy a property and do all the legal things in the buying regard. Else the powers can be given to even sell, mortgage etc.
What documents do I need to check before I buy?
It is always better to check the background of the Developer, the projects he has completed etc.
As far as the documents are concerned it is advisable to check if the builder has obtained a Legal opinion for the property on which he is constructing the apartment from lawyers who are in the panel of nationalized banks. Also check if the builder has obtained a valid license for construction from the local authority. For Mangalore it is Mangalore Municipal Corporation.
Can I avail loan to buy Property?
Generally on land a loan of 50% of the registered land value can be availed under the housing loan scheme.Wheras while buying an apartment or a ready constructed house a loan to the value of about 80-85% of the registered value can be availed.
The eligibility for availing the loan is generally on the basis of annual salary, the Income tax returns filed etc.For NRI’s it is calculated on the gross annual salary.
It is always better to avail a loan and buy the apartment for 2 reasons. Firstly the Bank will look into all the legalities of the property before they sanction the loan. Secondly the rate of interest is anywhere in between 9-10% per anum whereas the growth of the property is almost 20% ,on the conservative side. So it is generally profitable to go in for a loan than to delay the purchase.
What are the documents needed for availing the loan?
The main document is the registration documents of the land/apartment along with the permanent address proof, proof of income (salary statement), 6 months bank statement etc. For a NRI, passport copy, valid work permit,6 months bank statement has to be provided.
Can I close the loan before the actual period?
Yes. Most of the banks don’t charge you foreclosures. It is always better to pay more than the EMI whenever possible, so as to reduce the interest. A loan can be closed prematurely resulting in interest being charged only for the actual tenure till the foreclosure.
