When is the right time to buy your dream home?
By magnoliaAdmin | Dec 1, 2022
Choose the right time to buy your dream home
Are you planning to buy your dream home 🏢, but confused about when is the right time to buy your dream home? Now your wait is over, as this article will guide you with helpful tips.
Impact of COVID-19 on your today’s life
Covid-19 😷 has bought a lot of hassle and stress into everyone’s life. It has challenged both personal and professional’s life. In that case, most of the sectors have moved to digital platforms. Students are attending virtual school 💻 and employees have shifted to work from home. Work from home requires an office set-up that can be hassle-free, and students can have their private study room. So, what is the right time to buy your dream home? A home buyer’s decision to buy a dream home would depend on several factors, including the buyer’s affordability, real estate price, an ideal location, and loan servicing capability.
Top 5 tips to figure out the right time to buy your dream home
Home prices have declined by 1% on average in the third quarter, according to the Reserve Bank of India’s (RBI) home price index. Property prices across the country have been on their way toward decline, ever since the pandemic beat the nation last year.
In addition, RBI has decided to keep the Repo rate unchanged which has been at its lowest since 2001 April is a big relief for home loan borrowers.
All buyers can currently avail of home loans at interest rates as low as 6.65% yearly. From Jan 2020 when the average home loan rate was 8%. It has been a significant decrease for the moment.
1. Perception about home:
The pandemic has also changed the perception of home buyers, who now perceive it as an important component of security, financial or social. The rise in trends such as work-from-home has further bolstered the preference for purchasing a dream home.
2. Low pricing trend:
There is a pattern in the real estate market when the valuation of properties is either low or stable for a period. Such phases should be an excellent time to buy a dream home at affordable rates.
3. Interest Rate:
After touching historical lowers of less than 7 percent, there has been a rise in interest rates. The prevailing home loan interest hovering around 8.5 percent is still the best time to buy a home. Additionally, given the stubborn inflation and the probability of further rate tightening by the Central Bank 🏧, it is a good idea to book into residential property deals while rates are comparatively now. A higher interest rate means higher EMI tenures. So, it is preferable to seal the deal with low-interest rates.
4. Adequate Liquidity in hand:
It would help if you considered buying a home when you have adequate liquidity to pay as a down payment. You will have to shell out a percentage (usually 20-30 percent) of your property value as a down payment to purchase.
5. Good Credit Score:
A good credit score 💳 helps you get an excellent interest-rate deal. You should maintain a credit score of at least 750 points before starting your home-buying process. Thus, when your credit score is higher, it could be an excellent time to take a home loan for purchasing.
CIBIL SCORE Credit worthiness Approval Probability
|CIBIL SCORE||Creditworthiness||Approval Probability|
A particular CIBIL SCORE range signifies and consequently. The probability of approval of loans.
Property rates keep increasing, and it is the best decision to invest in a property. You can financially secure your future as it promises higher returns. You can secure yourself and your family by making a wise decision at the right time.
Work from Home and School from Home makes an attractive case for existing homeowners to upgrade to a bigger and more spacious home. Coming 5-6 years, prices of properties have become secure.