After a paralysis in the home buying scene which lasted for a couple of years, home buyers are planning on going shopping once again. In a recent online survey, over 60% of the respondents made it know they will most likely purchase a property in the next couple of months.
A lot of individuals who were once indifferent have now realized that buying a home at this period in time is quite sensible, especially when the cost of homes are still on the low side.
Regardless of the low cost, buyers are not rushing in without conducting thorough investigations. They are aware that in the next couple of years, incomes from real estate may not be enough to match returns from other asset classes. Some smart tips to maximize benefits when planning on buying a house include:
- Rent or Buy
Before embarking on your decisions, try as much as possible to perform a thorough rent versus buy analysis. In numerous cities, rentals are affordable while property prices are really high. Not everyone can buy a house buy majority can rent.
Also, younger individuals find renting a better option since it offers them freedom and flexibility to relocate to another area within a city or to another city. In case the EMI is not significantly higher when compared to the rent you are paying, you should consider buying the property.
- Consolidate Your Finances
In case you have made up your mind about buying, try as much as possible to consolidate your finances. With this, you will be able to project how much money you will be able to come up with for the down payment of the property.
However, the bigger the down payment, the smaller is your EMI. This translates into a lesser stress on your monthly budget. While attempting to improve the amount of down payment, resist from touching the investments set aside for retirement and other vital goals like marriage, children’s education and so on.
- Start Researching Options
Since investors are desperate of getting out of real estate, bargains should be everywhere. A lot of investors are selling off properties purchased some years ago. This has resulted in a huge availability of ready flats for sale.
Furthermore, try as much as possible not to buy outside your city because the rates are quite low. At times, buyers who have no knowledge concerning the reputation of the builders of another town may end up getting stuck on the wrong project. On the other hand, buying in the suburbs may turn out to be a good idea so as to avoid the hustle and bustle of the city life while living close to your workplace.
- Rely on experts
Expert agents who have a good reputation will be able to assist you in identifying properties which are in line with your requirements. The expert agent is already experienced in the market. With this, he will be able to find properties and have initial conversations with the owners. You are even more likely to get a good bargain through him.
- Prepare for EMIs
Asides properties, you have to zero in as regards the best loan provider. Portals of loan aggregator can act as intermediaries between borrowers and lenders. Only go for loans which you can easily service without interrupting or affecting other projects or plans.
- Consider Commercial Realty
In case your primary aim of purchasing a real estate is purely for investment, commercial property can be a better alternative. You can get a commercial property in areas with potential. You can expect superior returns.
In conclusion, it has been observed that returns from real estate tend to be jerky. No huge appreciation may occur for years, then out of the blues, prices shoot up once infrastructure projects are announced. Due to this, it is often advised that anyone planning on investing in the sector should not go for properties with an investment horizon of fewer than five years.