It may be time to ditch the ‘Wait and watch’ approach and plunge into a house purchase this year. This article outlines the reasons why.
Rising prices of Indian realty over the last few years have all but scared away scores of potential home buyers. Those who are taking the plunge and buying houses are doing so after borrowing home loans, since an upfront purchase is quite impossible in most cases. If you are still on the fence about whether to buy a house this year or to wait till 2019 rolls around – we say, do it now. Here’s why –
* Rates are climbing up.
Home loan rates touched down to new lows immediately after demonetisation was announced in November 2016. Interest rates had risen between 9% and 11% in most cases – these dropped down to 8% across leading banks and housing finance companies. In response, home buyers made a beeline for their preferred properties to capitalise on the lower interest rates. However, rates have been climbing since the beginning of year 2018, and they may rise still further as the year progresses. So if you are planning to buy a house any time soon, do it before home loans become expensive once again.
* There are a variety of home loans to choose from.
Leading housing finance companies have many home loans to choose from, right from home purchase loans to land and renovation loans. As a buyer, you get a lot of variety with regards to loan choices across banks and housing finance companies. It is wiser to use a home loan eligibility calculator if you are a first-time buyer – it gives you an idea of how much loan amount you can get basis your income, age, number of working years left, current liabilities, etc. Also, you can choose between fixed and floating rate of interest – leading housing financiers offer the option of switching between a fixed and floating rate of interest to save money. You can use an online home loan calculator to find out the EMI payable vis-à-vis the principal amount, interest charged and the loan tenure.
* Prices are climbing steadily.
The last five years have witnessed a dizzying rise in realty prices all over the country. High prices later combined with inflation and factors like demonetisation and GST to reduce inventory levels in the major cities. With low stocks being sold and RERA now promulgated, developers have realigned their marketing strategies to incentivise house purchases in their projects. Though there is no appreciable drop in prices, realty rates are stabilising and creeping upward quite slowly. So if you wish to buy a house, year 2018 is ideal.
* Inventory levels are rising, thanks to new projects by leading developers.
The mass media is awash with advertisements for new building projects by leading developers all over the country. This indicates that there is more inventory of ready and under-construction houses than before. There is greater choice across price points and localities, so you can find a house that fits your vision.