How to Know Whether It's a Good Time to Buy a Home?

India’s real estate market size is expected to touch trillion by 2030 and contribute 13% of the country’s GDP by 2025, according to data released by the Indian Brand Equity Foundation. These figures clearly indicated that buying a home is a smart investment. With property prices slumping recently and government schemes like PMAY being launched, it’s an even better idea now to begin investing in property.

Buying a home is also an emotional decision. This will be your private space in which you will see your loved ones grow and flourish. It will be a haven for your children, where they feel loved and completely safe. While all this is true, it’s important to keep emotions in check when making a decision to buy a home. It is a financial decision and should give you good returns. For this, you need to know whether now is a good time to buy a home. Here are a few things to consider.

Ø  Approved PMAY Scheme

The PMAY scheme is a ‘Housing for All’ mission started by the government of India to offer loans at subsidized interest rates and make buying a house much more affordable. One can use the fund to purchase a home and pay for further construction or extension if required. If you meet the Pradhan Mantri Awas Yojana eligibility, getting approval is completely hassle free. If you haven’t yet done so, get in touch with a reputed bank to find out more about this scheme.

Ø  Sufficient Savings

Before purchasing a home, ensure you have the money to make the down-payment. Your home loan approval will depend on this. The down-payment is typically around 10% of the value of the property. If you’re hoping for more manageable monthly payments, consider making a 20% down-payment.

Ø  Stable Income

Most home finance companies require you to present bank statements and income returns for the past six months. This is done to ensure that you have the capability to repay the loan. A stable source of income goes a long way securing loan approval. It’s best to check the PMAY rural or home loan documentation requirements before making a decision.

Ø  Real Estate Prices 

Property prices rise when the economy is flourishing. This is because economic growth creates more well-paying jobs, which boosts demand for houses. Amid the pandemic, property prices have declined and could remain depressed for a few months. Once the crisis ends and the economy begins recovering, the prices could rise again. This may be a good time to secure your dream home at a lower price. Other factors determining property prices are location, size, state of construction, time remaining for possession as well as quality of flooring and fixtures.

Ø  Well Settled Life

If you have a stable career, are married and have kids, and see yourself living in a particular city for several years, buying a house is a great decision.

Buying a home is a big decision. Adequate research and being mindful of your financial situation can help you make a better decision.

About This Author

Shaheen Shaikh http://www.adrclinic.co.uk Joined: April 29th, 2018