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Do you want to buy the house of your dreams: The rainy season could help

Do you want to buy the house of your dreams The rainy season could help - (A)

By the way, the monsoon season is not considered the best time to buy a house or property. With mortgage lending rates rising, and indeed in general, many homebuyers who were on the fence now face a dilemma: it’s now or never. Here are some things to keep in mind when looking for an apartment.

Home inspection

Although many people associate the monsoon with slow, stagnant traffic and a period of slow business activity, the rains are actually helping homebuyers.

Rain exposes building leaks, waterlogging, and infrastructure that creaks and sinks underwater, leaving people in trouble. With a resale home, viewing becomes a key aspect of buying a property.

Buyers can identify low-lying areas and avoid poorly maintained properties. Sometimes homeowners in financial difficulty are unable to maintain their properties. These properties, if in a good building in a good area, can be a worthwhile purchase, as long as the cost of repairs is factored into the price quote.

Beware of prices

It is almost certain that house prices will not go down. In some pockets, developers have already announced price increases.

“Sharp increases in input costs and, to some extent, increases in labor costs have put pressure on developers’ margins. There are no developer discounts. Instead, expect home prices to rise as economic growth picks up.

Although the developers cannot offer a discount, they can offer a free gift as sales are often slow during these times. A pre-approved home loan and a bank balance sufficient for a down payment will show the developer how serious you are about buying a home.

If the funds have already been arranged, an attractive offer may arise in the second-hand real estate sector. A rushed seller may be willing to drop the price a bit to close a deal quickly, knowing that there may not be another buyer any time soon.

Affordability can come under pressure when interest rates rise. According to Knight Frank India’s mid-year affordability index review, the Reserve Bank of India’s cumulative rate hike of 90 basis points in May and June reduced housing affordability by an average of 2%. in the markets and increased the EMI rate by 6.97%.

Loan It the right way

Real estate loans are essential for the purchase of housing given the high prices. A carefully considered credit option can reduce stress.

“We anticipate that lenders will soon introduce special monsoon home loan programs that offer fee waivers and other incentives for borrowers. For example, in August 2021, the State Bank of India (SBI) announced Monsoon Dhamaka’s offer of a 100 percent waiver of mortgage loan processing fees.

Homebuyers can compare different offers from lenders and contact the right bank. Lenders are not overwhelmed with loan applications during these times and are more likely to offer a relatively better deal.

“If possible, try to get a home loan that offers a fixed rate for a year or two because rates are going up.

Rising interest rates require careful borrowing. The amount to be paid in Equal Monthly Payments (EMI) cannot exceed 40-50% of your Net Net Income.

“Because mortgage loans are typically 10 to 20 years, you can always expect interest rates to rise over such a long period of time, and you should be prepared for it.

Consider a slight increase in interest rates and the resulting increase in EMI amounts, or extending the mortgage loan for a few years.

“Use excess money as a bonus or raise to pay off home loans early.

Home loans are large liabilities and must be repaid over a long period of time. The last thing anyone wants is to leave the house just in case. Therefore, it makes sense to obtain adequate term life insurance, as well as other coverage, to avoid such a situation.




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