November 8th, 2016

Waiting for the right time to buy a house? The right time is now !

We often wait for a perfect time and situation to buy or invest in something that is of significance to us. Careful planning is a must but sometimes, we wait for far too long for that right moment and in the process miss the opportunity. Buying or investing in a home for yourself demands diligent and careful planning too, in terms of your current and expected future financial situation, your existing obligations, your eligibility, your existing monthly rental etc.

For an individual, a home loan in most cases becomes a must for such in investment. Thankfully, home loan institutions now fund a higher percentage of a home loan cost than what they use to 5 or 10 years ago.  With high disposable income and a much better employment scenario in our country, home buyers are now able to invest in their dream home at a much younger age.  Funding norms are now in the range of 80-90% of house value & this has shrunk the time that an individual takes to amass an amount to buy a home which brings us to our first advice we have for home loan buyers

You don’t need to amass a huge wealth to buy a house: If you are saving to buy a house, have you considered one basic flaw in your reasoning? By the time you actually buy the house, real estate prices will have increased in two years, so waiting does not serve much purpose. Besides the lending institutions now funding up to 90%* of home cost, so prudent to take advantage and buy now.

Buy your dream home when you are young: While your disposable income may be lower, but the sooner you invest in your own home, the faster your are able to repay. The realization that you have your own home and you have repaid a part of it in your early years allows you to invest in a whole lot of other opportunities. Besides if you wait longer, your priorities change and accommodating a house purchase becomes slightly more difficult. Also, at a younger age you get the option to choose a larger tenure which reduces the per month EMI burden. You may calculate the difference in EMI for various tenures using the EMI calculator

Buy a house suited to your budget. Go one step at a time. Work on your dream house in a series of step if budget is a problem. The house that you love can be out of your budget. It is better to settle for an affordable first home if you do not have the resources currently to buy that dream house you yearn for. A few years down the line, you can buy a bigger property as your eligibility increases. Use a house loan eligibility calculator to find out how much loan you can get to buy the house.

Invest in under-construction homes. Many housing finance companies are amenable to providing home loans for approved under-construction properties. Generally under construction properties come at a lower cost and such properties also give you time to arrange your finances since you have to intermittently pay in parts as each successive slab is raised.

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