Investing in real estate has become a trend in India. Not only the residents, NRIs are also showing a great interest in Indian properties. Owning a house is a symbol of prosperity but owing more reflects affluence. Despite the fact that investing in Gold and Mutual Funds is more convenient and beneficial, real estate tops the list. 2007 was considered as the golden era of real estate in India and the boom subdued subsequently but seems like ‘Achhe Din’ are back. The number of home buyers is rising. There would always be a need for homes to live in, so this makes sense to buy a property. Let us see some facts that one need to know before buying a property this year.
1. For living purposes, one needs four walls and a roof, so that’s a necessity. But the return on investment is ascertained. Within a small duration like a year or so, the appreciation is going to be fairly flat. The magic can happen only when the Govt. plans something for the better infrastructure of the location. When the growth is only 4 to 5%, it is not wise to pay 9.5% on the loan drawn for the purchase of the property. This was about when one wants to liquidate the assets for a shorter duration of time. If one plans to hold the property for more than 5 years, real estate turnout can actually be good.
2. The ready-to-move properties are preferred over the under-construction ones because the return is instant in case one gives the house on rent and there is no possession delay. With the rise in inflation and decrease in the need for comfort and convenience, affordable housing units are selling fast and for the young people or newlyweds, rent is a more probable option. One should keep renting a house if the monthly EMIs are more than the monthly rent.
3. It is wise to pre-approve the loan so that the property buying is not delayed due to paperwork but there is a catch. One need to finalise the deal within 8 months at stretch, otherwise, the loan processing fees need to be paid all over again. Keep the finances in mind. The larger the down payment, the more loan one can draw from the bank and lesser would be the EMI. Less EMI means less pressure on the monthly budget. So, before buying a house, try to manage the down payment as much as possible.
4. Location, location, location! One should never forget the oldest rule of buying a property. The houses at the outskirts can be bought at more flexible prices as compared to the city ones. They are just at the peripheral so away from the city hustle but closer to the city life. The prime locations are not in the budget for everyone but these extended locations are connected to all the prime locations and can be a good bargain if one is planning to buy a property this time.
5. Invest in the builder with a good track record and deliverables. If someone is planning to buy a property in the state he is not familiar with, going with the reputed builders is advisable. Instead of going blind, one can hire a professional agent with considerable experience.
The property price in India is levelled. There is no scope for the correction. The builders already have the huge inventory that they need to sell. The price is already the best they can offer, thus, buy a property now before there comes a twist in the Indian real estate market.