Buying House and Car_Jitendra Shekhar

Jitendra Kumar, IBS-Mumbai 2008-10

What’s your plan five year down the line?

Getting good JOB

1

Beautiful Wife

2

Buying Car

3

Purchasing Dream House

4

Make your dream true

Purchase PlanningBuying Car

Motives:

Reduce the traveling time and also make the travel more comfortable

Status symbol or simply for pleasure

The Factors to be considered before purchasing the car:

1. Affordability:

Availability of finance for buying an automobile

Capability to make the requisite down payment and the monthly

installments

Care should be taken to ensure that one’s budgets and financials are not

heavily disturbed as a result of opting a certain scheme.


Factors to be consideredBuying Car

2.Operating Costs:

Installment costs

Insurance

License fee

Fuel and oil costs

Repairs and maintenance costs

Depreciation



3. Brand New or Second Hand:

Advantages of buying A USED car

Lower down payment to be made

Less expensive than the brand new car

There will not be a high depreciation

oDisadvantages of buying a USED car

Maintenance costs may increase, as the car is a used one

Problems like low mileage may occur

Expenditure may have to be incurred for investigation of the vehicle



4. Features of the car:

Size of the car

Performance of the car

Handling and appearance

Fuel economy

Reliability and possibility of repairs

Resale value of the car

5. Reliability and Warranties:

Reliability can be checked by contacting people who are using the

particular brand or by browsing through magazine or consumer reports.

Scrutinize the documents pertaining to the warranty provided.



5. Purchase of the car:

Visit all the dealers and have a look at all the cars, which may suit your

requirement and available budget.

eg: www.carwale.com, oldcardealers.com,

Local used car dealers:

A.C.T. India Ltd., Guindy;

A.C. Swamy Cars & Real Estate, Valasaravakkam

6. Price negotiation



6. Price Negotiation:

In case of new car, there can be no bargaining, as the car is available at the

showroom price. But the ‘car on road’ price is different as it includes costs of

certain accessories and insurance. Thus, bargaining can be done.

Dealers may also give discount on those models of cars, which are not

much in demand.

7. Financing:

Various financing options are available of many companies providing

financial services such as ICICI and HDFC bank.

Website auto.indiamart.com also provide auto loans

Maker your dream true

Meeting Housing NeedsBuying House

Food, Clothes and

Shelter are a man’s basic

necessities.

People have different

housing needs according to

their tastes, preferences

and financial conditions.


Various forms of HousesBuying House

1. Independent Houses: owning an independent house has become

extremely expensive especially in the urban areas and metropolitan

cities.

2. Condominiums: It’s a form of joint ownership. It can be in the form of

an apartment, townhouse or cluster houses. Buyer of the condominium

has the ownership title of a particular unit, and joint ownership to

swimming pools, lobbies, clubhouse etc.

3. Apartments: The most common form of housing facility available

today. Apartments are less expensive and affordable and can be easily

maintained. It is best suited for a small family, as it both affordable and

secure.


Motives of buying a HouseBuying House

1. Basic necessity of life

2. Source of income:

3. Tax shelter: Owner can obtain tax rebate on the installments and the

interest.

4. Inflation Hedge: An inflation hedge occurs when the value of the

property rises or appreciates equal to the rate of inflation or even

greater than it.


Buying processBuying House

The decision of investing in a house property involves a lot of money,

time and effort and has a long-term effect. Thus, before taking a decision

in this issue, following aspects should be taken into consideration-

1. The Market:

The information in various sources like News Paper, Internet, Real

Estate Agents.

Indiaproperties.com provides proper information about housing

property.



2. Emotional and Financial factors:

Person should be clear about what he/she actually requires(Optional

features, affordability analysis)

3. Agent:

A real estate agent has requisite knowledge and the contacts to find

property that would suit the requirement of the buyer.

The agent would also help in negotiating the price of the property



4. Applying for mortgage:

It is essential that borrower applies for mortgage and arrange the

loan in advance.

The prequalification for the mortgage also helps to enhance one’s

bargaining power as the seller can be made aware of the limit of the

loan.

Following document has to be presented at the time of applying for loan

Proof of monthly income

Assets owned and debt owed

Amount in the savings accounts

Loans such as educational loan taken, if any



5. Sales Contract: contract in writing giving following information

Names of the buyer and the seller

Description of the property

Price of the property

Signature of the buyer and the seller

In addition to these requirements, the contract may include certain

provisions such as-

Earnest deposit money:

Contingency clause:

Closing cost:



6. Closing the deal:

Title of the property be properly checked

It should be ensured that the title is free of liens and encumbrances

Person selling the property has the legal right to sell

7. Closing statement: The closing statement is provided to both the buyer and the seller,

before closing the transaction.

This statement reconciles the costs incurred by both the buyer and the seller and indicates how much buyer owes and the seller received.

Statement is signed by both the parties in order to make sure that it is accurate.

Thank You

Buying House and Car_Jitendra Shekhar

Documents

Transcript of Buying House and Car_Jitendra Shekhar