1. Jan-Feb 2011

INFOCUS
• Required certificates and Drawing approval from the local
authority (VDC/Municipality)
• Sale agreement
• Rajinama
• Construction drawings of the building
• Receipts of payments made like Property Tax, Electricity,
Maintenance payments and registration fees.
You may check the originality of the above documents in the official
records at the respective authorities/government offices.
4. Understand your finance schemes
The dream of the older generation was to pay off a mortgage.
The dream of today’s young families is to get one.
Loans come in plenty of different packages these days. It is like a
supermarket, where you can examine, evaluate and then choose
what to buy. To safeguard your decisions, you should not only look at
the low interest rates but also study the features and the flexibility
offered by the loan. Following is a small checklist for things to look
out for while choosing your home loan:
• Rate of Interest
• Calculation of Interest (whether the interest is calculated as
per reducing balance method or flat interest basis; whether the
interest is calculated annually, quarterly or monthly)
• Processing and administrative charges
• Commitment charges (It is levied when the loan is sanctioned,
but you don’t withdraw the loan amount for an extended period.)
• Penalty for early repayment
• Add-on Facilities (such as discounts, free property insurance,
waiving of pre-payment penalty or the processing fee, etc)
Most financial advisers warn against spending more than 30%
of a household’s income on housing costs as it can crimp other
expenditures and savings. It also leaves little room for unexpected
shocks to income such as illness or unemployment.
About Civil Homes: A city with the city
Civil Group is one of Nepal’s rapidly growing business companies.
The Civil Group, an ISO 9001:2000 organization, has seen a
decade long success. The group currently operates into Real
Estate, Housing, Finance and Trading.
Civil Homes was one of the first in Nepal to commercialize the
idea of owning a well-serviced house within a gated community.
After completion of Civil Homes Phase I in Bhainsepati, Phase II in
Tinthana, Phase III in Sunakothi, they are now ready with phase
IV in Dhapakhel. These projects undertaken by Nepalese for the
Nepalese people show a conscious effort made to provide good
infrastructure, healthy community living and state-of-the-art
lifestyle.
Located at Dhapakhel, Civil Homes Phase IV project is a two in one
project, consisting of Civil Homes Phase IV and Civil Apartments,
in an area of about 135 ropanis. It comprises of 90 individual
bungalows, four 17-storied and two 13-storied apartments, along
with a community centre, club house, swimming pool and also a
day care center. The project is designed to accommodate about
394 families. The complex also has large common parking areas
and play areas. As urban planning is a beauty of any city, Civil
Homes is a conscious effort of improving this urban landscape of
Kathmandu valley with its planned development.
Civil Homes - Phase IV at Dhapakhel, Kathmandu
5. Amenities and Location
As it is popularly known, “There are three most important aspects of
Real Estate – Location, Location and Location.”
Location plays a major role in deciding the price of the house.
Builders sometimes charge a premium for the location of the
property which is at a junction of two roads, conveniently close
to a bus stop or a shopping area. On the other hand, houses
close to sewage plants, railway lines, chemical factories has low
rates. Every building may have a different view or a different look.
The differences in flooring, fittings and amenities like children’s
playground, swimming pool, gymnasium, parking spaces and
other infrastructure developments also demand a premium. Thus,
it is advisable to take help from an approved valuator to receive an
indication of the price of the house.
6. Selling decision
The selling process is a mirror image of the buying process. This
means that there is an equal amount of risk in selling a property as
in buying. If you are still paying back mortgage on the property that
you are selling, you will need to pay off the outstanding amount. The
seller also needs to be conscious of the many expenses required
during the sale process such as broker’s fee, advertising, pre-sale
repairs in the building, taxation, etc.
Before you start the process of transferring your property in the
buyer’s name, it is important to verify the financial capacity of the
purchaser, particularly if the transaction is going to take place through
installments. Also, no original documents like Lalpurja and Blueprint
shall be transferred to the purchaser till the sale is complete.
7. Cautions during Leasing/renting
Renting out your house is one of the most common methods of earning
a little extra money from your vacant property. But the main fear is that
tenants may not vacate the premises at the end of the agreed period.
Thus, to safeguard your investment, the owner should ensure that
required precautions have been taken, such as:
• Ensure that the agreement contains a clause forbidding subletting.
• Shorter term agreements are safer. A 11-month leave and license
agreement is considered safer and is more popular amongst house
owners.
• Notice period for either side must be specified.
• Before renting out your property, you must do a background check
of the occupant.
• When you take back the possession of your house at the end of
tenancy period, you should return the deposit only after you have
checked that everything is in order and no damage has been done.
Buying, selling and renting a house not only involves a lot of money,
but one also has to deal with series of rules and regulations. Even
worse, one has to deal with various entities like registration office, tax
department, banks, lawyers, valuators, real estate agents, builders,
municipalities, housing finance companies, etc. The only factor which
can reduce our stress while dealing with a house investment, is the
correct knowledge. If we are more informed, we can take decisions that
will reduce risks in one of the most important transaction of our lives.
www.spacesnepal.com 26
January-February 2011