Buying a house is an important life goal for many. This could be a great time for you to fulfil such a goal. For the first time in a decade, residential property prices are on a downturn. In fact, property prices in India are expected to decline by 5.0% in 2020, according to Reuters June poll.
While this may sound exciting, buying your dream home requires a lot more than falling property prices. You need proper planning and research. So, here are some tips to help turn your dream into reality:
Know You are Looking For
Some of the things to keep in mind are:
· Location: A house in the heart of the city can significantly cut down commute time but will be far more expensive than a property in the outskirts. When choosing from locations in the outskirts, consider the nearby markets, hospitals, and schools. Since this is an important investment, look for localities that will grow. These are ones that are expanding in terms of population and infrastructure. A property in the suburbs may offer better growth prospects than one in a developed area in the city.
· Type of House: Your lifestyle will determine whether you need an apartment, condo, or an independent house. An apartment offers greater security but has limited scope of expansion.
· Size: Do not consider the super built-up area. This includes the area of the inner walls as well. Instead, check the carpet area.
Opt for a Home Loan
Financing your dream home is easier with a property or plot loan. Some of the things to consider are:
· The bank should be transparent about all fees, interest rate, documentation, and eligibility of the plot loan.
· Consider choosing a bank with a low turnaround time. Most banks take around 5 days to offer loans for plot. Choose a bank with a shorter turnaround time to remove uncertainty.
· The loan to value ratio offered by the bank is also important. The LTV ratio refers to the percentage of property value that is given as loan. According to RBI guidelines, banks can offer up to 90% LTV for properties worth less than ₹30 lakhs. The LTV ratio is 80% for properties between ₹30 lakhs and ₹75 lakhs.
· You can also transfer your home loan to get better terms and features. For instance, if you transfer your home loan balance to ICICI HFC, you can get benefits like flexible instalment plans.
Get a Real Estate Agent
You might know what you are looking for, but you still need to find it. Real estate agents have extensive knowledge about the property and localities. They also know which properties are built using high quality materials, which are safer, and which areas have better roads and are not prone to water logging. Choose your real estate agent after going through their reviews and experience.
This is a great time for buying your dream house. Be sure to do proper research and plan your finances well before buying any property.
