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Why This is The Right Time to Buy a House?

IndianMoney.com Research Team | Posted On Wednesday, October 30,2019, 05:58 PM

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Why This is The Right Time to Buy a House?

 

 

Have you been waiting too long to buy the dream home? Well, now is the right time to do so. Real Estate Prices are down in most cities. Retail Inflation was 3.99% in September. This is on the higher side, but not as high as in the past.

The price-points in real estate have remained almost constant since 2016. If you compare inflation and real estate prices, you will find real estate prices on the lower side. This makes it an ideal time to buy your dream home.

A smart person always invests when prices are low. This makes it the right time to buy a house. Want to know more on Residential Apartment? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial products.

Why This is The Right Time to Buy a House?

Home Loan Rates are down

All major banks have cut home loan interest rates. SBI had cut Marginal Cost of Funds based Lending Rate or MCLR by 10 basis points across tenors from 8.15% to 8.05% a year in October. Home Loan rates are really low as SBI introduced the lowest home loan rates in the market. With MCLR home loans and repo-linked home loans; expect home loan rates to really drop.

Home Loan rates are really cheap after RBI cuts repo rate to the lowest in a decade at 5.15%. Home Loan rates are directly linked to repo rates.

With home loan rates down, this is a good time to buy a house.

See Also: 10 Things To Consider Before Buying A Home

The right time to buy a house

When it comes to buying real estate the best time is when markets are down. The second best time is when you think of real estate as a viable investment. This should be the right time to buy a house.

Price-points of real estate have remained constant since 2016. If you consider inflation rates, real estate prices are at discounted levels.

The Indian Government is doing its best to bring the economy on track. Real Estate is of serious focus and the government has promised all support to the sector.

The Union Budget 2019 has proposed an additional Rs 1.5 Lakh tax deduction on the home loan interest component. This is for home loans to buy property priced below Rs 45 Lakhs. This would boost affordable housing in India. GST on affordable housing is a mere 1%.

See Also: Why you need to be careful while purchasing a residential apartment

Home is for settling down

From the Indian point of view, ‘Settling Down’ is very important. This relates to the Indian Social Sector. This is the stage when you complete academics to starting a business to yes, buying your own residential property.

House is a social security measure which is also a long-term investment. It’s a must have once you settle down in life.

House prices rise with economic growth

Inflation is currently on the lower side. Though high inflation is bad, inflation does boost growth in the economy. Real estate prices are low, but they won’t be so in the future.

Soon RBI would shift the focus from controlling inflation to supporting creation of new investments, businesses and of course, jobs.

Property prices would surely rise and so would rentals. This makes staying on rent in the future, a bad option. Real Estate has always been an appreciating asset. There is no reason why real estate prices should not go up in the future.

See Also: Things to Know Before Buying a Residential Apartment

Indians have always loved real estate. So, buying a house when prices are down makes perfect sense. A wise investor is always ready to grab such opportunities.

Real Estate is safe

After RERA and GST, real estate is quite safe. The amendments to the Benami Properties Act and Insolvency Laws have changed the way real estate functions in India. Real Estate is a transparent, safe and secure investment.

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