It is a dream for every man to own a home, even if it is just a one room shack! Unfortunately, for most of us, it never seems to be right time to buy – there is not enough money or the property you like is too expensive or too far … and so on.
However “NOW” is a very good time to buy your own home indeed. In the last 10 years, the average age of people buying a house has decreased from 42 years to 31 years, a drop of 11 years!
So what do these young people know that you and me don’t?
They know that there are compelling reasons to buy their first property now; We are detailing a few of reasons here:
1. Properties are only going to get costlier
If you study the property trend for the last ten years, property prices have been rising steadily and sometimes even rapidly, except for a brief period in 2008-09. And they are rising faster now, more than the inflation rate and more pertinently, faster than the increase in your income. So if you don’t buy it now, you might end up paying more or getting less for your money in the future.
2.Getting a home loan is easier
More and more people like you and me are upgrading to ‘home loan worthy” income brackets. Further, fierce competition between the home loan vendors has resulted in more flexibility with benefits for the borrowers. Home loans are now pretty easily available for a repayment tenure of 5 to 20 years. Moreover, the processing takes lesser time and has become easier and simpler. Even the processing fees are negotiable.You can even get a pre-approved loan, which could be a great bargaining tool.
3.Home rents have increased
If one expenditure head that has increased more than property costs, it surely is the home rentals. Over the last 10 years housing rents have appreciated rapidly, especially in large city like Bangalore.
It is a no brainer that it is better to pay a EMI installment than pay high rentals. Owning a home is emotionally satisfying, financially benefiting, and tax saving as well.
The Government wants you to buy a home; that is why your home loan interest upto Rs. 150,000 and a principal amount up to Rs. 100,000 is eligible for tax breaks every year.Furthermore interest on home loans are the lower than any other loan, so it is better for you take a loan and buy a property.
5. Mindsets have changed … home is just a commodity
In the olden days people considered buying a home as a once in a life time event. Generations flourished under the same roof and selling it was an unacceptable sin.
Though there are still many families in India who think that way, the modern generation consider homes to be just another commodity like cars, computers or air conditioners, which should be replaced with new ones, when needs change. For you too, this is just a first buy; you may expect to sell off this home and buy new one, as your family expands and income increases. You will probably change two to three homes during your life time.
The bottom line: You need not invest emotionally in your home; you just choose a property that is expedient for now.
6) Property is an appreciating asset
Share markets may go up and down but property is something whose value always goes up. The main reason is that land is a limited commodity while population is an ever increasing one.
Globally, the growth in real estate has beaten inflation and hence it is considered a good defense against it. It is not necessary that you buy a house only to live in it, you can buy a house and sell it after a few years and earn good profits. It is inflation proof place to park your investment funds.
I hope the above six reasons would have cleared any doubts you had as to whether to buy that property on which you have an eye now or not.
If you are still in doubt, do leave a comment below and we will be happy to answer.
Dinesh MC is Manager Sales with an extensive career spanning over 17 years. Dinesh holds a prolific portfolio, having sold over 6 lakhs sq ft of housing units, to a diverse clientele, which includes many iconic Bangaloreans and celebrities.
Dinesh’s key acumen lies in his in- depth understanding of the changing real estate sector and applying this knowledge to serve his clients with great value deals.