Whatever be your reason for looking for your own home, the current phase is indeed the best time to take the plunge. Why is that? Here are five reasons why it is the right time for buying your first home in India:
Along with these factors, the economic revival and improving job security in the country promises consistent returns from the rental market – if you are not planning to self-occupy your purchased house.
Add to that, even “previously overheated” upmarket locations in Mumbai is going through a “cooling down” phase – with the rents plummeting by up to 25%. Overall, the correction has not just been in the high-end luxury segment – but across all property segments including student houses.
Thanks to the recent slump in sales and rise in unsold inventories, real estate experts state that this is probably the best time for property buyers as they can get the best price deals even on ready-to-move-in properties - as opposed to just under-construction projects.
As a first-time homebuyer, you can avail of a home loan at an interest rate as low as 6-7% - as compared to 8-9% just a year back. This means that for a home loan of INR 50 lakhs taken for 20 years, you can save around INR 4,500/- in monthly EMIs – or up to INR 11 lakhs in EMI saving over 20 years.
Some of the freebies being offered by builders during the present festive season include cash discounts, easy payment schedules, complimentary home interiors or décor, free club membership, and even free iPhones.
Today, home buyers are in a much better situation thanks to higher Loan-to-Value (LTV) ratios and the availability of cheaper credit.
With the immediate future being uncertain for most real estate companies, it is the right time for first-time homebuyers to take advantage of the situation and find their dream home at a reasonable price.
Despite all the buyer’s advantage, you should still take necessary precautions before signing up with any property developer for your dream home. Furthermore, if you are only looking to enhance your returns from your invested capital, it may not be sensible to invest your money into property. In short, take a plunge into homeownership – only if you are prepared for it.