By Neha Nagpal, Magicbricks bureau
Siva Sivaram, a-28-year-old professional working in Chennai is currently living on rent at Rs 15,000 per month. He has thought of investing in a property in Nanmangalam and is keen to know the investment prospects of the locality. Why should you invest in Nanmangalam?
The locality provides all amenities required for a congenial livelihood such as schools, colleges, hospitals, shopping complexes, petrol pump and MTC bus connectivity. It is in proximity to IT corridor and Velachery situated within 7-9 km, which is an added advantage.
Tambaram and Chrompet are the neighbouring areas of Nanmangalam situated at the distance of 9 km. In terms of water supply, "The locality offers good ground water supply even during summers. An added advantage would be the sprawling lush green reserve forest located nearby," says Suresh Babu R, Oviya Properties.
The area has easy accessibility to Old Mahabalipuram Road and Grand Southern Trunk Road. The housing options available in the area include apartments, builder floor apartments, residential houses and plots. The average capital value of builder floor apartments range from Rs 13-40 lakh; of residential houses the range starts from Rs 14 lakh; the price range of plots starts from Rs 44 lakh.
Finance management
"Currently we are staying on rent in Velachery-Dhandeeswram at Rs 15,000 monthly. The total income being generated in our household is Rs 75,000. We are willing to spend Rs 35,000 on a monthly EMI," says Sivaram. Is Sivaram eligible for home loan?
"The loan amount is basis your age, number of dependents and other obligations. If you do not have any other liability then as per thumb rule you are eligible to get 60 times your monthly net income as a loan," says Rajiv Raj co-founder & director, CreditVidya.
For instance, with a floating interest rate at 10.15 per cent and loan tenure of 20 years, a buyer earning Rs 15,000 per month can get Rs 7.50 lakh as home loan. His monthly EMI will be about Rs 7, 370. Experts say that spending power defines what kind of property you can possess to a certain extent. Therefore, Sivaram who is looking to spend Rs 35,000 per month can look at buying a property worth Rs 30-40 lakh.
Sivaram is interested in buying a flat sized 821 sq ft at the 2nd floor, without lift. Magicbricks research shows that there are various options that fit his requirement. A 2BHK unit within the size range of 800-950 sq ft can be purchased at Rs 30-37 lakh.
What to be prepared of?
When planning to purchase a property jointly with one's spouse or partner then each of you is entitled to a deduction of Rs 2 lakh, as explained above. How to calculate it? Vaibhav Sankla, director, H&R Block India Private Limited says, "From the annual rent, deduct the amount of property taxes paid in respect of the house to arrive at net annual rental income. An amount equivalent to 30 per cent of the net annual rental income can also be deducted towards repairs and maintenance of the property."
"This 30 per cent deduction is ad-hoc and irrespective of the actual amount you incurred for repairs and maintenance. In case you have taken any loan for the purchase/repair of the property, then the interest from the same is available for deduction. The balance amount (annual rental minus the property tax minus 30 per cent deduction for repairs and maintenance and minus the interest on the loan) is the taxable income from the property. It would be taxed in yours and your wife's returns, based on the percentage of ownership," he adds.
Plan your finances well. Nanmangalam is a good place to own a property. Irrespective of whether you are employed in the nearby IT corridor or not, investment in the area will reap benefits in future.
Siva Sivaram, a-28-year-old professional working in Chennai is currently living on rent at Rs 15,000 per month. He has thought of investing in a property in Nanmangalam and is keen to know the investment prospects of the locality. Why should you invest in Nanmangalam?
The locality provides all amenities required for a congenial livelihood such as schools, colleges, hospitals, shopping complexes, petrol pump and MTC bus connectivity. It is in proximity to IT corridor and Velachery situated within 7-9 km, which is an added advantage.
Tambaram and Chrompet are the neighbouring areas of Nanmangalam situated at the distance of 9 km. In terms of water supply, "The locality offers good ground water supply even during summers. An added advantage would be the sprawling lush green reserve forest located nearby," says Suresh Babu R, Oviya Properties.
The area has easy accessibility to Old Mahabalipuram Road and Grand Southern Trunk Road. The housing options available in the area include apartments, builder floor apartments, residential houses and plots. The average capital value of builder floor apartments range from Rs 13-40 lakh; of residential houses the range starts from Rs 14 lakh; the price range of plots starts from Rs 44 lakh.
Finance management
"Currently we are staying on rent in Velachery-Dhandeeswram at Rs 15,000 monthly. The total income being generated in our household is Rs 75,000. We are willing to spend Rs 35,000 on a monthly EMI," says Sivaram. Is Sivaram eligible for home loan?
"The loan amount is basis your age, number of dependents and other obligations. If you do not have any other liability then as per thumb rule you are eligible to get 60 times your monthly net income as a loan," says Rajiv Raj co-founder & director, CreditVidya.
For instance, with a floating interest rate at 10.15 per cent and loan tenure of 20 years, a buyer earning Rs 15,000 per month can get Rs 7.50 lakh as home loan. His monthly EMI will be about Rs 7, 370. Experts say that spending power defines what kind of property you can possess to a certain extent. Therefore, Sivaram who is looking to spend Rs 35,000 per month can look at buying a property worth Rs 30-40 lakh.
Sivaram is interested in buying a flat sized 821 sq ft at the 2nd floor, without lift. Magicbricks research shows that there are various options that fit his requirement. A 2BHK unit within the size range of 800-950 sq ft can be purchased at Rs 30-37 lakh.
What to be prepared of?
When planning to purchase a property jointly with one's spouse or partner then each of you is entitled to a deduction of Rs 2 lakh, as explained above. How to calculate it? Vaibhav Sankla, director, H&R Block India Private Limited says, "From the annual rent, deduct the amount of property taxes paid in respect of the house to arrive at net annual rental income. An amount equivalent to 30 per cent of the net annual rental income can also be deducted towards repairs and maintenance of the property."
"This 30 per cent deduction is ad-hoc and irrespective of the actual amount you incurred for repairs and maintenance. In case you have taken any loan for the purchase/repair of the property, then the interest from the same is available for deduction. The balance amount (annual rental minus the property tax minus 30 per cent deduction for repairs and maintenance and minus the interest on the loan) is the taxable income from the property. It would be taxed in yours and your wife's returns, based on the percentage of ownership," he adds.
Plan your finances well. Nanmangalam is a good place to own a property. Irrespective of whether you are employed in the nearby IT corridor or not, investment in the area will reap benefits in future.
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