Worried if now is the right time to buy, or should you wait? Read more
There is a lot of concern that real estate prices are falling and that one should wait for prices to stabilize before buying a property. Here is our take on the real estate markets.
People view properties advertised for sale in the window of an estate agent in west London January 2, 2009.
•The best time to buy is when you can afford it! As a buyer, who does not buy or sell real estate for a living, you will never be fully confident like an expert if now is the right or wrong time to buy. If you are looking for a house for your family to live in, and can afford it, now might be the best time for you to buy. You will never be able to time the markets and buy at the absolute bottom of the real estate cycle!
•There is common perception right now, spread by the mass media, that prices are dropping by 20%-30% across India. It might be true for certain locations, but not for all. Also, this is probably more true of areas that were very overbuilt, like some suburbs of Bangalore, some parts of Mumbai, but this is not true for all markets in India.
•If you are an end user, is it better to wait, or to buy now? Well, that depends upon your time horizon. Chances are that as an end user you will most likely use your home for at least 10 years. So, why bother about short-term price fluctuations right now. Over the long-term, you can reasonably expect your property price to appreciate, so even if you need to buy today at a slight premium, over the next 10 years you will likely still come out with a gain.
•Finally, recent RBI interest rate cuts will start reducing home loan rates as well. This can only help you if you are in the market to buy as it will reduce the cost of your home financing.
( Disclaimer: iTrust articles and content contain the writers' opinions and do not constitute a recommendation. The advice, if any, is generic in nature and readers are advised to consult their financial advisor before taking any investment-related decision. International Business Times and iTrust, hereby, disclaim any responsibility for errors or omissions in these articles.)
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