Buying House and Car_Jitendra Shekhar

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Its ppt on personal financial planning...regarding buying House and Car. It may help you on decision making before purchasing car or home.

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Buying House and Car_Jitendra Shekhar

  1. 1. Jitendra Kumar, IBS-Mumbai 2008-10<br />
  2. 2. What’s your plan five year down the line?<br />
  3. 3. <ul><li>1</li></ul> Getting good JOB<br />
  4. 4. <ul><li>2</li></ul> Beautiful Wife<br />
  5. 5. <ul><li>3</li></ul> Buying Car<br />
  6. 6. <ul><li>4</li></ul> Purchasing Dream House<br />
  7. 7. Buying HOUSE and CAR<br />
  8. 8. Purchase Planning<br />Buying Car<br />Motives:<br /><ul><li>Reduce the traveling time and also make the travel more comfortable
  9. 9. Status symbol or simply for pleasure</li></ul>The Factors to be considered before purchasing the car:<br />1. Affordability:<br /><ul><li>Availability of finance for buying an automobile
  10. 10. Capability to make the requisite down payment and the monthly installments
  11. 11. Care should be taken to ensure that one’s budgets and financials are not heavily disturbed as a result of opting a certain scheme.</li></ul> Make your dream true<br />
  12. 12. Factors to be considered<br />Buying Car<br />2.Operating Costs:<br /><ul><li>Installment costs
  13. 13. Insurance
  14. 14. License fee
  15. 15. Fuel and oil costs
  16. 16. Repairs and maintenance costs
  17. 17. Depreciation</li></ul> Make your dream true<br />
  18. 18. Factors to be considered<br />Buying Car<br />3. Brand New or Second Hand:<br /><ul><li>Advantages of buying A USED car
  19. 19. Lower down payment to be made
  20. 20. Less expensive than the brand new car
  21. 21. There will not be a high depreciation
  22. 22. Disadvantages of buying a USED car
  23. 23. Maintenance costs may increase, as the car is a used one
  24. 24. Problems like low mileage may occur
  25. 25. Expenditure may have to be incurred for investigation of the vehicle</li></ul> Make your dream true<br />
  26. 26. Factors to be considered<br />Buying Car<br />4. Features of the car:<br /><ul><li>Size of the car
  27. 27. Performance of the car
  28. 28. Handling and appearance
  29. 29. Fuel economy
  30. 30. Reliability and possibility of repairs
  31. 31. Resale value of the car</li></ul>5. Reliability and Warranties:<br /><ul><li>Reliability can be checked by contacting people who are using the particular brand or by browsing through magazine or consumer reports.
  32. 32. Scrutinize the documents pertaining to the warranty provided.</li></ul> Make your dream true<br />
  33. 33. Factors to be considered<br />Buying Car<br />5. Purchase of the car:<br /><ul><li>Visit all the dealers and have a look at all the cars, which may suit your requirement and available budget.</li></ul>eg: www.carwale.com, oldcardealers.com, <br />Local used car dealers:<br />A.C.T. India Ltd., Guindy; <br />A.C. Swamy Cars & Real Estate, Valasaravakkam<br />6. Price negotiation<br /> Make your dream true<br />
  34. 34. Factors to be considered<br />Buying Car<br />6. Price Negotiation:<br /><ul><li>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.
  35. 35. Dealers may also give discount on those models of cars, which are not much in demand.</li></ul>7. Financing:<br />Various financing options are available of many companies providing financial services such as ICICI and HDFC bank.<br />Website auto.indiamart.com also provide auto loans<br /> Make your dream true<br />
  36. 36. Meeting Housing Needs<br />Buying House<br /><ul><li>Food, Clothes and Shelter are a man’s basic necessities.
  37. 37. People have different housing needs according to their tastes, preferences and financial conditions.</li></ul>Maker your dream true<br />
  38. 38. Various forms of Houses<br />Buying House<br />Independent Houses: owning an independent house has become extremely expensive especially in the urban areas and metropolitan cities.<br />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.<br />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.<br />Maker your dream true<br />
  39. 39. Motives of buying a House<br />Buying House<br />Basic necessity of life<br />Source of income:<br />Tax shelter: Owner can obtain tax rebate on the installments and the interest.<br />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. <br />Maker your dream true<br />
  40. 40. Buying process<br />Buying House<br />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-<br />The Market:<br /><ul><li>The information in various sources like News Paper, Internet, Real Estate Agents.
  41. 41. Indiaproperties.com provides proper information about housing property.</li></ul>Maker your dream true<br />
  42. 42. Buying process<br />Buying House<br />Emotional and Financial factors:<br /><ul><li>Person should be clear about what he/she actually requires(Optional features, affordability analysis)</li></ul>3. Agent: <br /><ul><li>A real estate agent has requisite knowledge and the contacts to find property that would suit the requirement of the buyer.
  43. 43. The agent would also help in negotiating the price of the property</li></ul>Maker your dream true<br />
  44. 44. Buying process<br />Buying House<br />4. Applying for mortgage:<br /><ul><li>It is essential that borrower applies for mortgage and arrange the loan in advance.
  45. 45. 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.</li></ul>Following document has to be presented at the time of applying for loan<br /><ul><li>Proof of monthly income
  46. 46. Assets owned and debt owed
  47. 47. Amount in the savings accounts
  48. 48. Loans such as educational loan taken, if any</li></ul>Maker your dream true<br />
  49. 49. Buying process<br />Buying House<br />5. Sales Contract: contract in writing giving following information<br /><ul><li>Names of the buyer and the seller
  50. 50. Description of the property
  51. 51. Price of the property
  52. 52. Signature of the buyer and the seller</li></ul>In addition to these requirements, the contract may include certain provisions such as-<br /><ul><li>Earnest deposit money:
  53. 53. Contingency clause:
  54. 54. Closing cost:</li></ul>Maker your dream true<br />
  55. 55. Buying process<br />Buying House<br />6. Closing the deal: <br /><ul><li>Title of the property be properly checked
  56. 56. It should be ensured that the title is free of liens and encumbrances
  57. 57. Person selling the property has the legal right to sell</li></ul>Closing statement:<br /><ul><li>The closing statement is provided to both the buyer and the seller, before closing the transaction.
  58. 58. This statement reconciles the costs incurred by both the buyer and the seller and indicates how much buyer owes and the seller received.
  59. 59. Statement is signed by both the parties in order to make sure that it is accurate.</li></ul>Maker your dream true<br />
  60. 60. Thank You<br />

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