The right time to buy a home is the time when you can secure the best value for the money you pay. Since buying a home is among the biggest investments one makes in life, the price of the property would be an important factor in the decision making process. The Property prices keep fluctuating based on market trends and if you choose the right time to buy a home, you can save a significant amount of money or get a larger space in the same budget. Let’s analyze some common market trends and try to ascertain if these can provide you the right time to buy a home.
#1. Festive offers:
Consumer sentiments are at an all-time high during the festive season. It is also considered auspicious to buy property during specific days of the festive season. This is why most builders launch special festive offers during this period to attract customers. Festive offers can comprise various benefits such a discount on prices, holiday packages, gold coins, or other freebies. Some builders also offer free registration, zero stamp duty, zero VAT, zero GST, no EMI till possession, discounted interest rates on home loan, etc. So, if you are planning to buy a home, the festive season could be the right time to do so.
However, make sure that the benefits are real and not just a marketing trick to persuade you into buying a home. For example, a builder might increase prices by 10% just before the festive season and then announce a 10% discount to attract customers. Similarly, the cost of freebies may be included in the price of the property. Compare rates and offers of other builders in the area to ensure that benefits available through festive offers are real.
#2. State of real estate industry:
If you keep track of trends in the real estate industry, you can identify the right time to buy a home. Every industry goes through cyclical ups and downs, and the same applies to the real estate industry. You should be on the lookout for periods of slowdown in the real estate industry, as this will be an opportune time to buy a home. During periods of slowdown, builders will be eager to strike a deal with you and willing to offer discounts on the quoted price.
You also need to check potential future trends, which will help you decide whether to buy property now or postpone it for a later date. For example, if the real estate industry is expected to witness a downturn in the next year, you could hold your purchase decision till that time. Vice versa, if property prices are expected to increase in the future, you can choose to buy your home now. However, since market predictions can be wrong, make sure you check all facts and possibilities before taking any decision.
#3. Supply and demand situation in the market:
In case demand exceeds supply in a specific area, it is natural for builders to raise property prices. Vice versa, if there’s oversupply, builders will be willing to reduce prices or launch special offers. You should study local market conditions and try to ascertain supply and demand situation in the market. If there’s high demand currently, it would be better to wait for the market to cool down. However, this strategy may not apply in every situation, as some micro markets witness continuous growth. If you wait, prices can increase even further the next year, the year after that and so on and so forth. In high-growth micro markets, the right time to buy a home is anytime you have the funds ready. In the opposite scenario, if supply exceeds demand, it would be the right time to buy your home. Excess supply forces builders to offer discounts and launch special offers in order to clear the existing inventory.
#4. Government regulations like tax benefits:
These can provide significant benefits when buying a home. For example, you can save tax when you start paying EMIs on your home loan. Your home loan EMI repayments comprise both interest amount and principal amount, and you can claim tax deductions on both. For interest paid on the home loan, you can avail tax deductions of up to Rs 2 lakh under Section 24 of the Income Tax Act. The government has also announced an additional tax benefit of Rs 50,000 for interest paid on a home loan. This is available to first-time homebuyers under Section 80EE. For principal repayment of your home loan, you can claim a tax deduction of up to Rs 1,50,000 under Section 80C.
If you look at existing government regulations, it is the right time to buy a home in the name of your wife. There are various benefits to be availed if you buy property in your wife’s name. For example, the extra tax deduction of Rs 1.5 lakh can be claimed towards interest paid on a home loan. Similarly, you will get a discount on stamp duty charges in the range of 1-2 percent. Different states have different stamp duty rates for women property buyers. Another key benefit is the discount on home loan interest rates. Currently, top lenders in the country offer 0.05% less interest rates to women property buyers, as compared to interest rates applicable to men.
While the price of the property and available benefits are important, other factors also play a crucial role. For example, you may have to consider other variables such as location of property, type of neighborhood, connectivity, amenities, and social infrastructure. You can’t ignore these factors just because you are getting a better deal in terms of price of the property. It’s like the different pieces of a puzzle, all of which need to fit together. When buying a home, it’s important to choose wisely to ensure that everything works out in your favor.