The real-estate market after suffering a slump for nearly five years is slowly seeing a rise, as many prospective buyers in-fact close to more than 60% as per the survey conducted by economic times after the RBI had slashed rates, say that are likely to purchase property in the next 12 months. This news is taken well to the homebuyers of Hyderabad and Delhi, but in cities like Delhi NCR and Bangalore is has not gone down so well due to huge cost on land rates which have decreased demand.

Also if you’re buying property solely as an investment purpose they tend to not be certain as you would experience no appreciation for a few years then suddenly the price might shoot after some property development has been announced. According to the recent survey many people prefer buying a house for their own purpose then use it as an investment.

In the next one year we will see an asset grow at 4-5% with a 9.5% interest on bank loan. And homebuyers are also wary of delays in completion of the projects and due to this many buyers are opting to purchase ready to move in developments rather than under-construction projects even though with the new act being passed.

Before you make a large investment like this evaluate your options, asses to see if it is feasible to buy a house of your own or rent and in certain parts of India, it is not affordable to buy a house due to high land rates but viable to rent one. Also if you are a young adult it is advisable to rent as you can focus on getting better job opportunities and will be able to relocate easily, but if you are stuck with your own house you will have to end up paying mortgage and sacrifice many job opportunities. But in certain cities like Hyderabad and Pune it is viable to purchase a house of your own as the land rates have not increased much. Before purchasing a home do a proper research as many real-estate developers are selling their projects at dirt cheap prices to get out of the real-estate market. So there is always a bargain. Also don’t be tempted to buy outside the city because the land rates are cheap as you have no idea about the reputation of the builder. Also it is good to find a place close to your workplace.

Apart from searching your ideal house, you also have to find the best loan provider to see if you can afford to pay the EMI. One way to identify your repaying capacity is to put an equal amount of money to the EMI in a recurring deposit or short-term fund. If you’re solely looking to purchase real-estate purely as an investment then it is best to invest in commercial property as you can expect superior returns.

While paying your home loans the bank lenders consider your take home pay after tax deductions and not the gross income. They also look if you have any other repayments such as car and personal loans. Housing finance companies agree that a debt should not surpass more than 30% of the borrower net income as the borrower can pay the home loan comfortably. When rates do rise the banks generally extend the tenure, but it can be an issue when the borrower has extended the repayment capacity to the maximum.

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