Perhaps you have been planning to buy a house and you have tried to use real estate apps to search for properties conveniently online. However, increasing property prices have ruined a lot of people’s dream. And as a number of individuals have actually bought a house for themselves, others have stopped thinking about it and just prefer to live on rent.
However, if you take a close look at the situation, you will know that renting is not really those who have lost hopes. Considering the present marketing situation, renting a property can actually be a smart thing to do. In fact, even people who have the means prefer to stay on rent until they time comes they can afford to buy their own property.
If you decide to own a house, you need to factor in some things aside from high property prices. These include the duration of your stay in the city where you plan to buy a property. Keep in mind that if you happen to move out pretty soon following your purchase, the property you purchased will become a liability. Make your decision while considering your financial reasons, family needs, cost of living, rising inflation and the real estate market condition.
Low Rentals vs. High Property Value
Prices of property have been continuing to rise as rentals remained modest. The Indian market’s high property prices are the main reason a lot of property hunters choose to rent. There is a steep increase of property prices in the country between 2010 and 2012.
High Upfront Cost
A lot of people may tell you that they would prefer to spend money on home loans than on rent. However, only a few have the capacity to afford the high upfront cost that may be required in purchasing a house. In general, upfront costs like the down payment ranges from 30% to 35% of the value of the property.
Increasing Cost of Living and High Inflation
You may have the financial capacity to buy a house; however, have you thought of the rising inflation and its effects on your living cost? Indeed, owing to undesirable economic conditions, income increase has not been able to keep pace with the inflation maze making people’s lives challenging.
Recently, high inflation has led to degradation of the in the net disposable income of borrowers. Considering inflation, the choose floating rate option in terms of home loans so you can enjoy the relief as the interest rate decreases.
The residential property market is not organized. That is why predictions are more about speculations. For a lot of home buyers, the decision to purchase can be based on their financial ability to buy a property or what they understand about the market. But, there a number of real estate portals online to help a buyer come up with a wise buying decision.
Uncertainty of Stay
Aside from external factors such as increasing property value and inflation, there are some aspects that must be taken into account when deciding to make a purchase. For instance, if you think you will stay in a city only for a short period of time, it is best to stay on rent. Owning a home typically makes you connected to an area making you less likely to consider relocating