Every middle-class person always has a dream to buy their dream home. Some manage to get it in the late 40s, while some make it possible early. Getting a dream home is more like a milestone achieved.
However, buying a home is a heavy investment that is only made once in a lifetime. Hence, you always look for the right property to make the right decision. After the COVID-19 era has affected the entire world, it's tough for many to survive their job. However, experts have noticed that this is the right time to buy your dream home.
Seems Weird!
But this is the reality. Numerous reasons contribute to this fact. Below listed are the reasons that help you understand why this is the right time to buy your dream home. Below listed are the prime reasons that make the current time a golden period for house buying.
Historical Stats: Historical data states that spring and summer are prominent when most homes are listed for sale. During early fall, competition on 'house for sale is high, which helps you make a broad selection at a negotiable price. That's the reason early fall is always considered the best time to make your smart purchase.
Impact of COVID-19: You are already aware of the adverse impact of COVID on almost every industry worldwide. Real estate is one of those industries that have experienced a dip in property rates, and hence this is an add-on to the historical stats. In short, the impact of COVID will provide you a handsome deal to buy a deal house.
You should note that the global outbreak has impacted the housing industry but hasn't bottom out.
Low-Interest Rates: The low housing loan interest rate is another big factor that makes current time the best. Banking firms and NBFCs have experienced a dip in demand for housing loans. This compelled them to offer attractive (low) interest rates compared to the historical data.
With low-interest rates comes the opportunity to make a smart investment and save big on interest rates. However, you should have a high credit score to match the best interest rates criteria. According to the stats, housing loan interest has moved to a 15-year low that gives a jaw-dropping deal for the home buyers.
Rebate on Tax: Yes, if you buy your home with low-interest rates, you have two benefits i.e., less interest amount and tax rebate. When filing your ITR, you are eligible to get a tax rebate on the interest amount you pay across the year. This is a plus if you earn in a taxable slab and look for the right investment to save tax.
If you are planning to purchase a home on loan, you should consider high down payments. With high down payments, you will lower your loan to value (LTV) ratio.
Buyers Market: According to the stats, nearly 6 lakh unsold flats are available in the prime cities of India. This makes it easy for first-time buyers to choose from different. Many builders are even offering exciting offers to the buyers like zero stamp duty, free registration, free GST, etc. These benefits further invite customers who are planning a new house.
Additional Subsidy By Government: If you are aware of the government policies, you already know that you are eligible to get a subsidy of up to 2.5 lakh for your first home. The subsidy helps minimize your home loan and helps you with lower EMIs.
The affordable housing loan is entitled to a credit-linked subsidy scheme offered by the government. This also invites home buyers to strengthen their buying decision and live a peaceful life in their dream home.
Boost to Work From Home Culture: Post covid-19, the work from home culture is in huge demand. With that said, employees living in rental apartments consider investing in their dream home that costs equivalent to their monthly rent. For many, it's better to pay monthly EMIs instead of rental payments.
You also get time to live life in your dream home and continue earning without transportation expenses. This way, you are also capable of making your real estate asset.
Push By Government: Nevertheless, the government is also promoting housing schemes at a high pace. This allows the buyers to make their selection and book their dream home at affordable prices. Across the year, governments disclose multiple housing schemes at highly competitive prices. Further, the schemes offered by the government are protected with easy payment options.
In the recent budget allocation, India's Finance Minister (Sitharaman) increased the fund allocation for Prime Minister Awaas Yojana-Urban (PMAY-U) from 8,000 crores to Rs 18,000 crore.
This makes it more likely to increase the number of houses constructed by the government and offered to the buyers.
Whether you are prepared or not, you should always plan to purchase your house in the early days of earning. The reason being, you have a high potential to work hard and clear the loan in a short duration.
Taking a loan at a later age (above the 40s) compels you to save a fixed corpus that can be used in an emergency. Moreover, you won't get the affordable interest rates that are available to young consumers.
Now you are prepared to purchase your dream home. It's important to acknowledge a few points before buying your home.
Check Features You Want: Foremost point that every buyer should consider is the availability of facilities. Every house is made to serve your needs but not every home suits your requirements. You should evaluate whether you deserve the house or not.
Your dream home always has some basic requirements that are a must for you and your family. You should look for such properties that bestow all those features. E.g., lawn, patio, front garden, etc. Hence, you should evaluate your requirements and match them with the house.
Choose the Right Broker: Not everyone finds it easy to search for the right house for their family. It's good to go for a broker that can do the search and provide selective options to make the right decision. Many times, first-time buyers find it tough in decision-making. Brokers help them make the right deal with a small commission.
However, you should research the commission rate, as not all brokers charge the same commission to a buyer.
Check the Surrounding & Neighbourhood: Your neighborhood and surroundings play a significant role in the upbringing of your kids. Hence, it's essential to make sure the surrounding is good and have a supportive neighborhood.
The golden rule is to choose a place surrounded by common facilities like a park, gym, pedestal area, and community hall. Furthermore, you should talk to the neighborhood to know their nature, the standard of living, and their experience about the area.
Area of Your House: Your house area is also crucial to check before finalizing the deal. Experts always recommend looking for a spacious house that can provide you enough space to settle down without congestion. You should never go with a small property situated in a posh area only to build a status symbol.
Consider Age of Property: Yes! Every property has an age. After a certain age, your property starts demanding maintenance. Hence, you should check for the property age to ensure it doesn't require maintenance as soon as you move in. There are always pros and cons to buying a brand new home. With a new property, you get the chance to design your home as you want. However, being a second owner limits you from remodeling until it starts demanding high maintenance.
Also Read- Financial Checklist to Consider Before Getting a Home Loan
Potential for Future Projects: Regardless of the country you live in, it's essential to check the future plans of the government w.r.t. your selected area. The government often plans to establish new hospitals, institutions, transportation stations, etc., that can add value to your property. On a similar note, the government may plan to build a fly-over that can cover your property. In such a case, you will get compensation for the property and be required to move to a new location.
So, you should check the future projects and make the decision accordingly.
Budget of House: Last but not least, it's vital to consider the budget of your house. Always invest in a home that fits your budget. Never show off and make a wrong decision as it will require heavy investment and can puncture your pocket.
So, these are some crucial points that you should definitely consider if you are planning to buy your dream home.
Remember, when buying your dream home, timing is everything that can help you save a significant amount on your one-time investment. The entire knowledge shared above will help you make your decision and book your dream home. Numerous realtors are available to help you with a small commission. So, what are you waiting for?
The covid-19 era will soon end, and in such a scenario, it will become tough to make the right investment.