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There’s a saying that one must never time the market. The same applies to the real estate sector as well. Here’s how to determine when to buy a home
When one thinks of making an investment, property is often the option that crosses the mind of the person, the simple reason behind it being that investing in it is almost always profitable because the value of land always appreciates; it never depreciates. However, when buying a property, the first question that pops up in every buyer’s head is whether or not it is the right time to buy now. There is no right answer to that question.
However, if you’re still unable to make the decision, here are a few factors you should consider before making the purchase:
The lower the interest rates, the better time it is to make an investment in the real estate sector. Reduction in the loan interest rates benefit the end consumer. When the home loan interest rates go down, buyers from lower and middle segment are encouraged to buy one. When mortgage rates go down, it translates into either lower EMIs, more credit limit or a combination of both for buyers. This increases the purchasing power of the buyer.
DIP IN PRICES
While the prices of property seldom depreciate, in the last three years, with the inflation rate, home prices have actually declined, becoming more affordable than ever. Experts predicted that there would be no appreciation for the next three years, so this year is the right time if you want to buy a house. Since developers are sitting on an unsold inventory, they are forced to offer discounts and that is a win-win situation for the buyers.
AFFORDABILITY FOR YOU
The only right answer to the question ‘When is the right time to buy a house?’ is this: ‘whenever you can afford it’. The property market is volatile and unpredictable, and prices may upsurge all of a sudden if there are other factors contributing to it. This is why, your ability to make the purchase must be seen as the right time to buy a home. If you have an idea about what exactly you want and if you find it, and have the purchasing power at that point of time, do not think too much. Just buy it. After all, you never know when the prices shoot up!
DEVELOPMENTS IN THE NEIGHBOURHOOD
When you’re planning to buy a home in a particular area and see that there are several new developments happening in the form of new projects coming up, facilities and amenities like schools, hospitals and restaurants cropping up; then don’t waste a single minute! Buy the property as soon as you can because otherwise, the prices may surge!
FUN FACT: The lower the interest rates, the better time it is to make an investment in the real estate sector. Reduction in the loan interest rates benefit the end consumer.