What is the best time of the year to buy a house?
On the face of it, this may appear to be an insane question. After all, why would not just about anytime be right for buying a house? But, truth be told, this ‘best time of the year to buy a house’ argumentation is not absurd at all. We are not referring to ‘Jyotish Shastra’ or astrology; we base our premise on logic. Let’s break it down for you, with valid reasons, of course.
● Early Bird
Buying a property just when it is launched could get you an excellent introductory price. Builders offer new homes at attractive prices to draw more buyers. Be the ‘early bird’ and save money.
● Corporate Discounts
Builders offer corporate discounts enticing employees to buy a property at special rates. People buying homes, in groups, can also manage a good deal. Other offers to avail a hefty commission is to recommend others to buy a property in the same layout, like you.
● Before the annual budget
Buy a house just before the end of a financial year, for that is when builders are most likely to drop prices. A new budget could bring new taxes, which could push builders to hike the property prices.
● When the market is down
Prices drop drastically when the economy is down. Most people shy away from investing in properties because of the uncertainty that prevails. But, if you have the means, go ahead and buy the house of your dreams.
● Unsold houses
It is technically not a time of the year, yet, it is a good tip. The best time to buy a house is when the real estate builders have just a few homes up for sale. These could be the sample houses or just something that did not get sold. Builders are often anxious to sell everything and walk out of the project and willingly reduce unsold houses’ prices.
● Monsoon Season
Why the monsoon, you ask! Well, that is the time of the year when the rain gods are at their benevolent best. And that presents an excellent opportunity for prospective homebuyers to inspect properties for leaks and seepages. Damp walls are a bad sign. Walk away from properties where the inside of the home shows clear signs of seepage.
Check the balcony slope. Is it built, right? Does the rainwater stagnate in corners, does it flow into the house, instead of rushing into the drain? Ignoring these aspects could spell doom later.
Additionally, scrutinise the approach roads leading to the development. Do they become inundated, even with light showers? Does the area have proper stormwater drains? Checking these points will save you from a lot of headaches later—trust us on this.
When is the best time in your life to buy a house?
It makes sense to own a home before retirement. Owning a home is such a burden off one’s shoulder. Financial gurus recommend that individuals buy a house early on in life. Purchasing a property is, after all, a good investment. Young people often do not consider investing in a property when they just start earning. One can understand their apprehensions, but then everyone knows that living in rented accommodations has its disadvantages. There is rent to pay, with a caveat of rent increase every eleven months, not to forget the constant moving. Instead, people can finance a home, and the rent money can pay for part of the EMI on the home loan.
A house bought as an investment can pay for itself by renting it out. It will serve as a buffer that safeguards the owner’s financial future. With time the value of the property is bound to appreciate, ensuring a good return on investment.
Waiting till one gets older to buy a house is a risky proposition, for the simple reason that inflation has a direct impact on property prices—both continue to rise. What is affordable today could become too pricey tomorrow. Moreover, added responsibilities, later on in life, could poke a spanner in the plans.
Buying a home allows various tax deduction benefits under the IT Act, which saves you money. Buying a home early on cuts down the risk of wealth erosion, due to the rising inflation.
One also becomes financially disciplined and learns to budget everything and master money management skills. That is one of the biggest life lessons one learns from buying a home, early on.
However, do not plunge into buying a home, based on our advice. Be prudent. Make sure that you have a strong financial background and a secure job. We live in unpredictable times when the ‘pink slip’ comes without warning. Have a corpus fund to tide you through ugly eventualities and until you find another job. That way, you will not miss out on paying the EMIs.
Is this a good year to buy a house?
The pandemic may have disrupted lives and played havoc, but it has brought about some good. The ‘work from home’ culture has picked up. People are comfortable working from home—there is no commuting, to and from work, which helps save fuel costs and vehicle maintenance, which could be a few thousand. The money saved can be used for paying the EMI, and reduce some of the financial burdens.
Moreover, many State Governments have made it easier for people to buy new homes. Some have reduced the stamp duty charges. And, major banks and non-banking financial institutions, and other lenders have announced rate cuts on home loans. Furthermore, most builders are offering attractive discounts. There are other offers from builders that you cannot miss—such as complementary modular kitchen or wardrobes and/or air conditioners. So, go ahead and make use of the best of these offers and buy the house of your dreams. Right now is the best time to buy a house. Don’t wait, go for it.