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Price,location,builder reputation,the age of the building,quality of construction and the legal status should be considered before you go about buying the property.

I am looking to invest in a second house. What are the things I should be careful about?

Debashish Mohapatra,Delhi

The price of the property,its location,the reputation of the builder,the age of the building,its design and layout,the quality of construction and the legal status of the building should be considered before you go about buying the property. However,before that you need to figure out if your budget can accommodate the new house. Do think carefully about the purpose behind the purchase decision and the potential benefits of such an investment etc. before you finally decide to take this course of action.

How do I know if my loan situation warrants going in for a refinance?

Suparna Chaudhary,Kolkata

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The fundamental behind every personal finance decision has to be cash flow. If any scenario gives you a positive saving of over 15,000 and this amount is significant enough for you and is worth all the paperwork that needs to be redone,then that would be the ideal choice. Also,taking a refinance to get a lower EMI at the cost of a higher net outflow can be harmful in the long term as you will have to pay more interest (translating into negative cash) over the period. But it also depends on your current ability to service the loan. If you feel that the cash saved every month on a lesser EMI can help you lead a better life,then it could make sense. If the refinance is going to result in a net outflow of more than 15 per cent of the outflow of current loan,it is better to stay away from the refinance.

What is a waiver of premium? Is it a useful rider for my insurance policy?

Tridib Adhikari,Lucknow

A waiver of premium is an extra option that life insurance companies provide you over and above your life insurance policy. This comes at an additional cost,and offers protection and cover for your premiums should you fall seriously ill or incur injuries that leave you impaired. In such an unfortunate event,the life insurance company will assume the responsibility to pay the premiums,which you were expected to pay.

The best part about this rider is that anyone who takes up the insurance policy can effectively add this rider to the policy. The amount of premium to be paid depends on the premium you pay on the base policy and on other riders. Please note,however,that the higher the premium on the base policy,and the more the riders you add,the higher will be the premium you pay on this rider.

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The expert is CEO,Bankbazaar.com
For your personal finance queries please email at expressmoney@expressindia.com