There is no place like home right? So why not take a step back and wait for the right time. You may think it’s about when you have the proper savings, are ready to take a housing loan but it’s more than that. Judging the right time to hunt for a house can save you thousands of bucks and not just two or three.
For places like metro cities in the country or even those that are crowded with job ops from MNCs like Chennai, Bengaluru, etc have a lot of working men and women who plan to buy a house. If you are living as a paying guest in Chennai or Hyderabad and wish to buy a residence of your own, there are plenty hoping the same. So, let’s find out when would be the right time for you to buy one.
Finances- Checking Your Stability
It is understandable why you need to be able to have enough savings to buy a house because it’s not just the property that you are buying but also the liability of its maintenance, taxes, registration and a lot of other costs that come along. There are quite a few things you need to ensure to get the house.
● Outstanding Debt
Since there are a lot of opportunities to get a loan and pay easy installments, you need to calculate your outstanding loans. This can be anything from an EMI for a mobile phone to student loans. Anything and everything that you have to pay off to banks or even to personal loans from family or friends should be calculated with precision.
If you are a new techie in the town or a newly joined teacher, you know damn well you need to have a 6 months lodging and food savings in your bank and this should not be dug into while buying the house as this is your basic funding in case you lose the job. So, find out how much money you can save apart from this and if you can include it.
● Bank Loans
Here’s the fun part about loans, there are so many and they are so confusing; what’s the fun it that? You can get instant money for the house if you choose wisely. Although interests are quite high in comparison to the 2011-2012 periods, it’s still considered low. You can just hop on to financial websites offering loans and check for your probable loan credibility depending on your current financial state. Even the State Bank has a loan offer @ 8.35% under the Pradhan Mantri Home Loan; check out if you are applicable for it.
I Have All My Finances Covered- When Can I Start Hunting?
You are a pro if you have your finances covered and are ready for the house. There has been a lot said and argued about GST. From April 1st, 2019 the under construction tax percentage has been brought down from 12% to 5% which has acted as a boost for promoters and builders. This has made the burden of taxes easy on them; as a result, these sectors of housing are under rapid development at the moment, making it a great opportunity for buyers as well.
For affordable housing sectors, it has been reduced from a whopping 8% to 1% which is an amazing benefit that you can now reap while looking for a house in the country. Now is a great time as it is more profitable for Investors to get into real estate with the easier ability of compliance to GST.
Can We Count in Months?
Although real estate is an emerging big sector, the chances to absolutely predict the ups and downs in the market for amateurs are very low. But there are simple and more generalized tips to help you understand and build a plan to invest in a home and understand if you are ready to buy a house.
From July to mid-September and then again from October to January consists mostly of the rainy and winter season in the country. These are considered a good time of the year to buy a house. With the holiday season in between these months, buyers as well as sellers are more inclined on spending time with friends and family. Other people in the market at this point have less competition and are more probable of finding a house of their choice within their budget.
How Do the Prices Vary Seasonally?
Unless you are a pro player at the real estate market it is extremely hard to assume what happens at which point but the seasonal prices do vary just like any other commodity. For example, if you buy a cooler or an ac in December or January you get it for less right? In the same way, people tend to clear up stock and are keener on making a deal towards the end of the year or at the starting.
For example, sellers are often advised by real estate agents to hold on to their property through spring and wait for the summer season which is likely to bring up the prices starting from the end of the financial year in March. This means if you are ready at the end of the year to make a deal, you have a high chance of cracking a deal with impatient sellers who have had their property waiting through the summer, rain and are keen on making the deal when winter arrives.
As the real estate market trends vary from region to region, months and seasons, you need to be on the lookout throughout the year even while you are preparing the finances. This will give you a great idea of when you can expect the prices to go down a bit and strike a deal. Get your finances ready, check out your loan credibility and hop on board to find your dream home.