Renting or investing in a new home is a major decision. With the growing population, rents and prices of properties are skyrocketing. Many people move into the big cities in hope of a better career and financial prospects and for accommodation. They mostly decide to take a place on rent, as buying isn’t an option unless their stay is permanent. There are certain benefits of taking a place on rent, such as no financial commitment and option to move out whenever you want. But every time you plan to move out, you end up paying a certain amount of money to your landlord as a maintenance fee. And beside all this, what if your landlord suddenly decides to sell or rebuild the property when you are not ready to move out?
A self-owned property gives you freedom from nagging landlords and frees you from the inflation of rents year after year. You are no longer bound to the rules of your landlords. You can choose your own wallpaper to furniture; renovation and alteration in the landscapes do not need approvals from your landlords; Issues in having pets will no longer exists; a permanent address will be achieved; changing schools will not be a worry; strong friendships and bonds will be developed in permanent neighborhoods.
Owning a house is on the wishlist of many. Financially secure people can afford luxurious homes, some cannot afford it, others stretch their finances to buy a home and even postpone their purchase until the necessary funds are accumulated. The rapid urbanization and migration of a lot of people into the big cities has increased growth in the real estate sector with demands for good residential houses. This has also caused urban housing shortages for the economically weaker sections of society.
The financially strong sectors can choose luxurious homes, villas, swanky condos and apartments. But what about the economically weaker sections, low-income groups and the middle-income groups where money is an issue. Keeping this proposition in mind the government of India has incentivized purchasing affordable homes for first-time buyers. They can avail of a subsidy on housing loans and there is a substantial reduction in the tax on ‘under-construction’ houses.
One such home loan scheme that was initiated to meet the housing needs of the mid-income group, and those belonging in the economically weaker section (EWS) and low-income group (LIG) is the Pradhan Mantri Awas Yojana (PMAY) scheme. This is the Government’s mission to provide – “Housing for All” by the year 2022.
The benefits of this scheme are:
Subsidized Home Loan Interest Rates: The interest subsidy of 3 to 6.5% is given to those who earn up to Rs. 6 and 12 lakhs annually. EWS and LIG groups can avail a home loan up to Rs. 6 lakh for a tenure of 15 years and a subsidy of 6.5% is offered. Interest subsidy on loans up to Rs. 12 lakh is 3%. In general, the home loan interest rates in banks range from 8 to 12%.
This lowered interest rate in this scheme lowers the EMI amount which does not alter the monthly expenses.
Preferential Allotment of Houses to Women
To encourage homeownership among women in rural and urban places, women are given a preferential allotment of houses over men. It is made mandatory to have at least one woman register as the owner of the new home. Women have a special window for loan processing.
Funds for Renovation or Extension:
The scheme allows funds for renovation or extension of your already existing ‘pucca’ house.
Latest Technology to Construct Houses
The adoption of modern technology, green practices and plans as per the latest geo-climatic conditions are initiated by the scheme.
Increase in Carpet Area for Two Middle-Income Group Categories
The scheme has increased the carpet area for the two Middle-Income Group (MIG) categories.
This great initiative by the government has created a buzz among the developers in the states. Several real estate sectors have contributed to support the PMAY scheme across the country. One such real estate company which works toward making a million dreams to own a home come true is Swarn Griha.
About Swarna Griha: It is a housing initiative that supports the PMAY vision. They offer quality houses to the Economically Weaker Sections (EWS) and the Lower Income Groups (LIG) of society; they work towards providing dignified lives for all in a positive environment. It is a two-model housing project.
Swarna Griha Projects I and II are located in Tumakuru: Swarna Griha I is located adjacent to the Annenahali Industrial Area, and Swarna Griha II located at Vasanthanarasapura, which is fast-developing into the largest industrial area in India.
- Homes are constructed with both, aesthetic tastes and comfort levels. They provide spacious, seamless and relaxing rooms.
- They provide a good floor and ceiling space; as homes with low ceilings are not very good for interior designing.
- They believe in project density. There is no particular thumb rule but over-crowed projects do not qualify as luxury.
- They have sufficient parking space even if there is no ideal yardstick measure, normal and stack parking is preferred over puzzled type mechanized parking.
- Swarna Griha is a worthwhile investment. They do not misuse the luxury tag as it takes more than just the word. Style and comfort are crucial to a home’s functionality and at Swarna Griha it is taken into consideration in the early stages of planning itself.
- Swarna Griha is a project that is designed for a combination of lifestyle, safety and comfort.
The average monthly expenditure of renting is got from the sum of rents and maintenance costs, whereas, the monthly cost of buying is done by adding maintenance costs to EMI. A high ratio confirms buying is the best option and lesser ratio points towards renting as the best option.
We were not talking about money here; it’s about the comfort and the vision that is necessary to make a living. Renting a space is like throwing away money. Owning your own home gives you a feeling of happiness and contentment.
“There is nothing like staying at home for real comfort” – Jane Austen