Should First Time Home Buyers Go Ahead Now?
Buying a home is one of the important investments of the common man in India. As they intend to invest their lifetime earnings in purchasing a home. A careful analysis is important for the buyer to know if it is a right time for him to purchase a house. Individual financial needs vary from business to business, however, let look into common perspective to know if it is right for the first time home buyers to initiate the process. Considering few important factors before you buy a home will help to take the decision perfectly.
The amount of home loan you are eligible should not be the key factor for deciding your ability purchase home. You should consider the interest you pay to the lender on availing the home loan and how it would affect income when you pay out instalments every month. If you are going to choose floating interest rate as the banks have reduced their interest rates today, remember that these floating interest rates are subject to market fluctuations and you must pay high instalments in unfavourable market conditions.
Intention behind purchase
If you buying the house for the personal use, it is the right time to own one with the help of the home loan. The government of India is offering many benefits to the first-time home buyers in the budget 2017. The tax exemption on the housing finance has increased to 50,000 if the loan is taken for 35 lakhs to purchase a property worth 50 lakhs.
There is a good drop in the price of the property during recent times. The price for square feet has greatly reduced both in the urban and rural areas. When there is a drop in the price of the property and interest rates offered by the bank. A prospective buyer tends to wait to see if there is further drop in the price of the property to benefit more. Lower than the current price would mean compromise on the cutting the sides of the builder. You may have to comprise on various aspects like security, quality of the construction. The property prices in the country have reached reasonably lower prices and it is very good time buy a home with the help of the home loan if you can afford one.
While purchasing a big property with total earning, it is common for the buyers to be concerned about big promises made by the developer. When the promises are beyond the expectation, it may cause nervousness as you wonder if the developer can keep up the promise. It is important for you to get associated with the builder that has good track record and history so that you can be assured that all the promises made the developer are delivered and you get the best for your money.